Canadian Solar Continues To Execute

Canadian Solar Inc. (CSIQ), which was founded by a Canadian, Shawn Qu, but actually trades on NASDAQ and has operations based in China, reported strong results earlier this week. Revenues for the manufacturer of solar panels were $212 million, while earnings came in at 70¢  per share (excluding effects of a one-time charge due to conversion of convertible note of $10.2-million).

The good news prompted Canaccord analyst Jonathan Dorsheimer to up his target on Canadian Solar to $44 from $43. He said the results were above the consensus revenue estimate of $207 million, though below Mr. Dorsheimer’s forecast of $211 million.

“The strong results and the increased capacity guidance show continued execution,” says Mr. Dorsheimer in a research note. “The company is fully funded for this year’s plans and its low capital needs help create among the highest return on invested capital in the industry, in our opinion.”

The analyst also noted that the company has raised its revenue guidance for 2008 to $850 million. The shares closed yesterday at $28.70, down 3% on the previous day.

All US$ unless otherwise specified.

Comments

[kkin365:]

It is always puzzling when a stock is down while reporting favorable earnings with an up market in the background. Yesterday (using the post's date, 8/14), DJI was up 82.97, so were NASDAQ (up 25.05) and S&P (up 7.10)

2008 Aug 16 04:04 PM